Islamic Studies/Islamiat (Competitive Exams) MCQs
Topic Notes: Islamic Studies/Islamiat (Competitive Exams)
<p>MCQs and preparation resources for competitive exams, covering important concepts, past papers, and detailed explanations.</p>
Plato
- Biography: Ancient Greek philosopher (427–347 BCE), student of Socrates and teacher of Aristotle, founder of the Academy in Athens.
- Important Ideas:
- Theory of Forms
- Philosopher-King
- Ideal State
171
What is the purpose of a Shariah Supervisory Board in an Islamic bank?
Answer:
To ensure compliance with Islamic law
The Shariah Board oversees all financial products and ensures conformity with Islamic principles.
172
Which principle forbids the trading of debt at a discount in Islamic finance?
Answer:
Prohibition of Riba
Debt trading at a discount constitutes riba, as it involves unequal exchange of money for money.
173
What does 'Qard Hasan' mean?
Answer:
Benevolent loan without interest
Qard Hasan is a loan given purely for welfare purposes without expecting any return.
174
What does 'Halal investment' mean?
Answer:
Investment permitted under Shariah law
Halal investments comply with Islamic ethical and legal guidelines, avoiding haram activities.
175
What is 'Gharar' in Islamic finance?
Answer:
Excessive uncertainty or ambiguity in a contract
Gharar refers to transactions with major uncertainty, such as selling an unknown item or outcome.
176
What differentiates Sukuk from conventional bonds?
Answer:
Sukuk are asset-backed, while bonds are debt-based
Sukuk represent ownership in real assets or projects rather than a debt obligation.
177
What is the literal meaning of 'Sukuk'?
Answer:
Certificates
Sukuk literally means certificates and represent ownership in tangible assets or services, unlike interest-bearing bonds.
178
What does 'Takaful' represent in Islamic finance?
Answer:
Cooperative Islamic insurance system
Takaful is a mutual protection system based on solidarity, where participants contribute to a shared fund.
179
Which of the following is NOT allowed in Islamic finance?
Answer:
Speculative transactions (Gharar)
Gharar, or excessive uncertainty, is prohibited because it leads to injustice or exploitation.
180
In Islamic finance, what is 'Ijara'?
Answer:
Leasing or rental agreement
Ijara refers to leasing where ownership remains with the lessor while the lessee pays rent for asset use.